Evolution Petroleum — Fiscal Q4 2026 Earnings Summary

Financial Performance

• Total revenues for Fiscal Q4 2026 were $24.2 million, a 15% increase year-over-year (YoY) from $21.1 million in Q4 2025 and a 20% increase sequentially from $20.2 million in Q3 2026.
• Net income for Fiscal Q4 2026 was $4.6 million ($0.13 per diluted share), compared to $3.4 million ($0.10 per diluted share) in Q4 2025; Q3 2026 reported a net loss of $8.9 million.
• Adjusted EBITDA for Fiscal Q4 2026 was $6.5 million, a 110% increase sequentially from $3.1 million in Q3 2026, but a 24% decrease YoY from $8.6 million in Q4 2025.
• Adjusted Net Income for Fiscal Q4 2026 was a loss of $0.6 million, compared to an adjusted net income of $1.1 million in Q4 2025.
• Lease operating expenses (LOE) were $12.8 million for Q4 2026, up from $11.4 million in Q4 2025; LOE per BOE was $20.35, an improvement of approximately 5% from $21.49 in Q3 2026.
• Depletion, depreciation, and accretion (DD&A) expense was $5.6 million for Q4 2026, down from $5.8 million in Q4 2025; DD&A per BOE was $8.29, compared to $8.27 in Q4 2025.
• General and administrative expenses (excluding stock-based compensation) were $1.8 million for Q4 2026, down from $2.0 million in Q4 2025; G&A per BOE was $2.80, down from $2.99 in Q4 2025.
• Net cash provided by operating activities for Q4 2026 was $6.8 million.
• Cash and cash equivalents were $6.1 million as of June 30, 2026, with outstanding borrowings of $56.5 million under the Senior Secured Credit Facility.
• Total liquidity was $13.9 million as of June 30, 2026, increasing to approximately $19 million pro forma for the August 2026 acquisition and equity offering.

Guidance and Future Outlook

• Fiscal 2027 is expected to benefit from fresh production adds from multiple sources, including the recently acquired Permian Minerals position and new operations in Louisiana.
• Management anticipates continued momentum in fiscal 2027 driven by over 1,000 near- and long-term undeveloped drilling locations added via the Permian Minerals acquisition.
• The company expects to continue building a robust energy model with long-life producing properties and significant upside development from non-operated working interest assets and mineral/royalty positions.

Business Segments and Product Lines

• Average production for Fiscal Q4 2026 was 6,901 BOEPD, down 4% YoY from 7,198 BOEPD but up 3% sequentially from 6,700 BOEPD in Q3 2026.
• Fiscal 2026 full-year production was 7,077 BOEPD, slightly above the 7,074 BOEPD recorded in fiscal 2025.
• Revenue mix in Q4 2026 was 68% crude oil, 18% natural gas, and 14% natural gas liquids (NGLs).
• SCOOP/STACK production averaged 1,275 BOEPD in Q4 2026, up 14% YoY, with LOE declining to $10.33 per BOE from $11.05 in the prior-year quarter.
• Chaveroo production increased to approximately 260 BOEPD in fiscal 2026 from 175 BOEPD in fiscal 2025; the company has secured six drilling permits.
• Louisiana Haynesville and Bossier positions included approximately 90 producing gross wells, 16 wells in drilling/completion stages, 35 pre-permitted wells, and over 60 additional identified locations as of July 31, 2026.
• TexMex assets saw improved operating performance due to workover and optimization activity.

Market and Competitive Landscape

• Average realized commodity prices (excluding derivatives) increased 20% YoY to $38.55 per BOE in Q4 2026 from $32.23 per BOE.
• Average realized crude oil price was $90.74 per barrel in Q4 2026, up 49% from $60.82 in Q4 2025.
• Average realized NGL price was $32.49 per barrel in Q4 2026, up 27% from $25.50 in Q4 2025.
• Average realized natural gas price was $2.13 per MCF in Q4 2026, down 23% from $2.76 in Q4 2025.
• The company holds mineral and royalty interests in four of the top five most active U.S. basins by rig count: Permian, SCOOP/STACK, Williston, and Haynesville.

Risks and Challenges

• Adjusted EBITDA decreased YoY primarily due to realized losses on derivative contracts in the current period compared to realized gains in the prior-year period.
• Production declines in Q4 2026 were attributed to the expected decline of wells that experienced flush production in Q4 2025.
• Lease operating costs increased YoY, partly due to the absence of a $1.9 million credit from a Barnett Shale operator joint venture audit that occurred in the prior-year period.
• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations.

Management Commentary and Tone

• Kelly Loyd, President and CEO, described Fiscal 2026 as an important year marked by strategic acquisitions, maintained dividends, and reserve growth exceeding production.
• Management highlighted that temporary items weighing on Q3 results rolled off as expected, leading to a 20% revenue rise and more than doubling of Adjusted EBITDA in Q4.
• The tone was positive regarding the "year-end momentum" and the strategy of adding mineral and royalty interests to create cost-free future drilling locations and greater capital allocation flexibility.
• Management stated the combination of assets presents a stronger model to support dividends and compound shareholder value over time.

Other Key Points

• On August 20, 2026, the company completed the acquisition of mineral and royalty interests in the core Midland Basin for approximately $16.0 million.
• The Permian Minerals acquisition included approximately 3,420 net royalty acres, 832 producing wells, 7 completed wells, 34 DUCs, 27 permitted wells, and approximately 1,257 upside locations.
• The acquisition was funded with $12.8 million from a concurrent public offering of 4.3 million common shares and $3.2 million in borrowings under the Senior Secured Credit Facility.
• The company declared a $0.12 per share cash dividend on September 10, 2026, payable September 30, 2026, marking the 52nd consecutive quarterly dividend since December 31, 2013.
• Total dividends returned to shareholders in Fiscal Q4 2026 were $4.3 million, and $16.9 million for the full fiscal year 2026.
• Total proved reserves ended fiscal 2026 at 27.2 MMBOE, replacing more than 100% of fiscal 2026 production of 2.6 MMBOE.
• The borrowing base on the Senior Secured Credit Facility was temporarily increased from $65.0 million to $73.0 million from August 20, 2026, to October 20, 2026.
• The company received $3.1 million from the divestiture of SCOOP/STACK non-core, non-producing mineral acreage and $1.0 million net proceeds from an At-The-Market equity sales agreement during the quarter.
• Total cash dividends paid to date amount to approximately $151.7 million, or $4.53 per share.